A new phone application is introduced to the kindergartens in Gothenburg. The following logit model
(logistic regression) is used to find the association between the usage of the app and each of the
explanatory variables; private (private =1, public=0) and size (the number of the children in the
kindergarten).
$$ln\left(\frac{P[Y=1]}{P[Y=0]}\bigg|Private, Size\right) = \beta_0 + \beta_1 Private + \beta_2 ln(Size)$$
$$ln\left(\frac{P[Y=1]}{P[Y=0]}\bigg|Private, Size\right) = 0.6 + 0.8 Private + 0.5 ln(Size)$$
A) What are the odds of adopting the new app by a public kindergarten with 50 children?
B) Find the probability of adopting the new app by a public kindergarten with 50 children.
C) How do you interpret the coefficient $\beta_1 = 0.8$?
D) Find the marginal effect of the variable Size for public kindergartens with 50 children.